MTECHTIPS:-Crude futures rebound as UScrude inventories drop for 8th

MTECHTIPS– Crude futures settled higher, after data on Thursday showed that supplies of U.S. crude fell more than expected and were down for the eighth consecutive week, easing concerns that rising US oil output would undermine Opec and its allies’ efforts to curb supply. On the New York Mercantile Exchange crude futures for June delivery rose 4 cents to settle at $48.36 a barrel, while on London’s Intercontinental Exchange, Brent dipped by 21 cents to trade at $50.55 a barrel. Crude futures soared to a high of $49.17 earlier in the session but came under pressure, as the bigger than expected draw in U.S. crude inventories was offset by an announcement from President Donald Trump that the U.S. is withdrawing from the 2015 Paris climate agreement. Inventories of US crude fell by roughly 6.4 m barrels in the week ended May 19, according to the Energy Information Administration. That confounded expectations of draw of around 2.5 m barrels. Gasoline inventories, one of the products the crude is refined into, dropped by 2.86 m barrels against expectations for a draw of close to 1.1 million barrels while distillate stockpiles unexpectedly rose by 394,000 barrels, compared to expectations of a 755,000 decline. The stronger draw than expected in gasoline inventories eased concerns of a slowdown in gasoline demand amid the start of the U.S. summer driving season, which is traditionally associated with heavier refining activity
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